Rules for the Valuation of Properties According ECO/805/2003 (II)

Valuation Rules According ECO/805/2003 (II)

Valuation Entity. Updating. Rehabilitation. Antiquity.

In Spain, the Valuation Entities are:

• in general, Valuation Companies approved and registered in the Special Registry of the Banco de España
• for valuations aiming at the mortgage warranty of loans that are or will be part of the coverage of mortgage titles issued by institutions, developers and builders described by the Spanish Royal Decree 685/1982, the Valuation Services of loan entities approved and registered in the Special Registry of the Banco de España.

Updating

Updating a valuation is to review a valuation issued by a Valuation Entity before two years from the date of issuance, or three if the purpose of the valuation is to cover the technical provisions of insurance companies required by the Spanish Royal Decree 2486/1998. The updating can modify the warnings, the conditions or any of the values.

Rehabilitation

A building in rehabilitation is a building, or an element of a building, which has started some works that meet the following requirements:

• they are being performed under a building permit
• they are being performed according to a set of Construction Documents endorsed by the Architects' Association
• they affect at least a 50 per cent of the floor area, involving the improvement of the living conditions (replacing, restoring or upgrading constructive elements or installations) or a substantial alteration of the morphology of the building
• the construction cost reaches, at least, a 50 per cent of the gross replacement value of the building, excluding the value of the land.

In the valuation of an entire building in which a partial reform is being performed, the definition of rehabilitation may be applied to the affected part if the works cover, at least, a complete storey.

Antiquity

For the correct interpretation of the Order ECO/805/2003, the antiquity is the number of years between the date of construction or complete rehabilitation of the property and the valuation date.

Architect Daniel Trujillano

http://www.arquitectotrujillano.com/valuation/home.html

Valuation Reports for Real Estate Properties in Spain